RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
1. When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
1. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

2. In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
3. If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
4. If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
5. For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
6. If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
2. In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
3. If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
4. If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
5. For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
6. If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

7. In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
7. In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
8. The project is shut down due to break The change is proposed
down of major equipments like boiler, due to the reasons that
turbine etc. which adversely affect the many projects are
capacity utilization for the project. suffering on account of
such break downs which
affects the revenue
generation capacity for
a longer period.
9. Any other factor adversely affecting The conditions for
the cash flow and debt service capacity reschedulment as
of the borrower, to the satisfaction of indicated in para 1 to 8
LENDER. above have normally
been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

i. Cases which have been i. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
ii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
ii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
i. faces resource crunch on account of i. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ii. makes payment to other ii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
iii. has not tendered request for iii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

iv. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
v. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
iv. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
v. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ; Over
due interest of normally not less
than 25% (*)
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges including
legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
vi. defaults and cases filed vi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
a) remits the entire dues of interest ; The change of condition
less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

vii. have been issued Recall Notices vii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
a) Fresh appraisal of the project. No change
b) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
8. When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
10. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

9. In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
10.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
11.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
12.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
13.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
11.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
12.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
13.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
14.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
15.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

14.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
16.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
17. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
18. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

iii. Cases which have been iii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
iv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
iv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
viii. faces resource crunch on account of vii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ix. makes payment to other viii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
x. has not tendered request for ix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

xi. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
xii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
x. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
xi. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
d) entire overdues of interest ; Over
due interest of normally not less
than 25% (*)
e) 50% of the Principal Loan amount
for such instalments.
f) entire incidental charges including
legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
xiii. defaults and cases filed xii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest c) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
d) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

xiv. have been issued Recall Notices viii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
c) Fresh appraisal of the project. No change
d) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
15.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
19. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

16.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
17.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
18.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
19.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
20.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
20.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
21.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
22.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
23.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
24.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

21.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
25.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
26. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
27. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

v. Cases which have been v. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
vi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
vi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
xv. faces resource crunch on account of xiii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
xvi. makes payment to other xiv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
xvii. has not tendered request for xv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
xviii. is profit making and dividend paying xvi. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
xix. Defaults and criminal action is xvii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; g) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges h) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
i) entire incidental charges including
legal charges ;
 -6-
xx. defaults and cases filed xviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest e) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
f) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

xxi. have been issued Recall Notices ix. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
e) Fresh appraisal of the project. No change
f) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
22.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
28. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

23.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
24.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
25.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
26.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
27.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
29.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
30.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
31.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
32.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
33.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

28.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
34.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
35. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
36. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

vii. Cases which have been vii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
viii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
viii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
xxii. faces resource crunch on account of xix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
xxiii. makes payment to other xx. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
xxiv. has not tendered request for xxi. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
xxv. is profit making and dividend paying xxii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
xxvi. Defaults and criminal action is xxiii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; j) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges k) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
l) entire incidental charges including
legal charges ;
 -6-
xxvii. defaults and cases filed xxiv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest g) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
h) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

xxviii. have been issued Recall Notices x. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
g) Fresh appraisal of the project. No change
h) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
29.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
37. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

30.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
31.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
32.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
33.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
34.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
38.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
39.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
40.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
41.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
42.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

35.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
43.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
44. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
45. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

ix. Cases which have been ix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
x. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
x. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
xxix. faces resource crunch on account of xxv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
xxx. makes payment to other xxvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
xxxi. has not tendered request for xxvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
xxxii. is profit making and dividend paying xxviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
xxxiii. Defaults and criminal action is xxix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; m) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges n) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
o) entire incidental charges including
legal charges ;
 -6-
xxxiv. defaults and cases filed xxx. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
i) remits the entire dues of interest ; The change of condition
less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
j) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

xxxv. have been issued Recall Notices xi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
i) Fresh appraisal of the project. No change
j) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
36.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
46. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

37.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
38.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
39.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
40.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
41.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
47.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
48.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
49.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
50.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
51.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

42.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
52.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
53. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
54. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xi. Cases which have been xi. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
xxxvi. faces resource crunch on account of xxxi. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
xxxvii. makes payment to other xxxii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
xxxviii. has not tendered request for xxxiii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
xxxix. is profit making and dividend paying xxxiv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
xl. Defaults and criminal action is xxxv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; p) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges q) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
r) entire incidental charges including
legal charges ;
 -6-
xli. defaults and cases filed xxxvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest k) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
l) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

xlii. have been issued Recall Notices xii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
k) Fresh appraisal of the project. No change
l) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
43.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
55. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

44.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
45.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
46.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
47.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
48.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
56.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
57.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
58.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
59.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
60.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

49.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
61.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
62. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
63. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xiii. Cases which have been xiii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xiv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xiv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
xliii. faces resource crunch on account of xxxvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
xliv. makes payment to other xxxviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
xlv. has not tendered request for xxxix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
xlvi. is profit making and dividend paying xl. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
xlvii. Defaults and criminal action is xli. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; s) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges t) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
u) entire incidental charges including
legal charges ;
 -6-
xlviii. defaults and cases filed xlii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest m) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
n) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

xlix. have been issued Recall Notices xiii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
m) Fresh appraisal of the project. No change
n) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
50.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
64. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

51.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
52.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
53.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
54.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
55.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
65.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
66.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
67.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
68.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
69.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

56.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
70.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
71. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
72. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xv. Cases which have been xv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
l. faces resource crunch on account of xliii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
li. makes payment to other xliv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
lii. has not tendered request for xlv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
liii. is profit making and dividend paying xlvi. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
liv. Defaults and criminal action is xlvii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; v) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges w) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
x) entire incidental charges including
legal charges ;
 -6-
lv. defaults and cases filed xlviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest o) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
p) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

lvi. have been issued Recall Notices xiv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
o) Fresh appraisal of the project. No change
p) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
57.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
73. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

58.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
59.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
60.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
61.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
62.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
74.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
75.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
76.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
77.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
78.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

63.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
79.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
80. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
81. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xvii. Cases which have been xvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
lvii. faces resource crunch on account of xlix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
lviii. makes payment to other l. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
lix. has not tendered request for li. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
lx. is profit making and dividend paying lii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
lxi. Defaults and criminal action is liii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; y) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges z) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
aa)entire incidental charges including
legal charges ;
 -6-
lxii. defaults and cases filed liv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest q) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
r) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

lxiii. have been issued Recall Notices xv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
q) Fresh appraisal of the project. No change
r) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
64.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
82. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

65.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
66.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
67.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
68.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
69.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
83.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
84.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
85.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
86.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
87.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

70.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
88.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
89. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
90. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xix. Cases which have been xix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xx. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xx. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
lxiv. faces resource crunch on account of lv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
lxv. makes payment to other lvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
lxvi. has not tendered request for lvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
lxvii. is profit making and dividend paying lviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
lxviii. Defaults and criminal action is lix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; bb) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges cc) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
dd) entire incidental charges including
legal charges ;
 -6-
lxix. defaults and cases filed lx. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
s) remits the entire dues of interest ; The change of condition
less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
t) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

lxx. have been issued Recall Notices xvi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
s) Fresh appraisal of the project. No change
t) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
71.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
91. When the borrower demonstrates that For more clarity.
its ability to service the debt/s has been
adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.

72.In respect of co-financed projects, if
the other institutions have agreed to
reschedule the loan for the project.
73.If the borrower is not in a position to
service debt on account of impact of
government policies, effect of
industrial unrest i.e. strikes, lockouts
etc., even if the loan is not co-
financed but the borrower is able to
satisfy LENDER in this regard.
74.If the commissioning of the project is
delayed beyond the moratorium
period originally given, for valid
reasons.
75.For projects which are of pioneering
effort, experimental, demo type, first
of its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to
take place etc.
76.If the payments to the borrowers are
not made by State Electricity Boards
(SEBs) in respect of grid connected
projects.
-2-
92.In respect of co-financed projects, if the No change.
other institutions have agreed to
reschedule the loan for the project.
93.If the borrower is not in a position to No change.
service debt on account of impact of
government policies, effect of industrial
unrest i.e. strikes, lockouts etc., even if
the loan is not co-financed but the
borrower is able to satisfy LENDER in this
regard.
94.If the commissioning of the project is No change.
delayed beyond the moratorium period
originally given, for valid reasons.
95.For projects which are of pioneering No change.
effort, experimental, demo type, first of
its kind, involving developmental
efforts, where technology has not yet
stabilized, grid stabilization yet to take
place etc.
96.If the payments to the borrowers are not No change.
made by State Electricity Boards (SEBs)
in respect of grid connected projects.

77.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
97.In case the borrower is able to satisfy No change.
LENDER through documentary evidence
that they are not in a position to service
the debt(s) on account of demands by
the tax authorities like Income Tax,
Excise Tax and Sales Tax which
substantially effects the cash flow
position of the borrower.
98. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
99. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxi. Cases which have been xxi. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
lxxi. faces resource crunch on account of lxi. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
lxxii. makes payment to other lxii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
lxxiii. has not tendered request for lxiii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
lxxiv. is profit making and dividend paying lxiv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
lxxv. Defaults and criminal action is lxv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; ee) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges ff) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
gg) entire incidental charges including
legal charges ;
 -6-
lxxvi. defaults and cases filed lxvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest u) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
v) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

lxxvii. have been issued Recall Notices xvii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
u) Fresh appraisal of the project. No change
v) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
78.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
100. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

79.In respect of co-financed projects, if 101. In respect of co-financed No change.

the other institutions have agreed to projects, if the other institutions have
reschedule the loan for the project. agreed to reschedule the loan for the
project.
80.If the borrower is not in a position to 102. If the borrower is not in a position No change.
service debt on account of impact of to service debt on account of impact of
government policies, effect of government policies, effect of industrial
industrial unrest i.e. strikes, lockouts unrest i.e. strikes, lockouts etc., even if
etc., even if the loan is not co- the loan is not co-financed but the
financed but the borrower is able to borrower is able to satisfy LENDER in this
satisfy LENDER in this regard. regard.
81.If the commissioning of the project is 103. If the commissioning of the No change.
delayed beyond the moratorium project is delayed beyond the
period originally given, for valid moratorium period originally given, for
reasons. valid reasons.
82.For projects which are of pioneering 104. For projects which are of No change.
effort, experimental, demo type, first pioneering effort, experimental, demo
of its kind, involving developmental type, first of its kind, involving
efforts, where technology has not yet developmental efforts, where
stabilized, grid stabilization yet to technology has not yet stabilized, grid
take place etc. stabilization yet to take place etc.
83.If the payments to the borrowers are 105. If the payments to the borrowers No change.
not made by State Electricity Boards are not made by State Electricity Boards
(SEBs) in respect of grid connected (SEBs) in respect of grid connected
projects. projects.

84.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
106. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
107. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
108. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxiii. Cases which have been xxiii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxiv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxiv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
lxxviii. faces resource crunch on account of lxvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
lxxix. makes payment to other lxviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
lxxx. has not tendered request for lxix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
lxxxi. is profit making and dividend paying lxx. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
lxxxii. Defaults and criminal action is lxxi. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; hh) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges ii) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
jj) entire incidental charges including
legal charges ;
 -6-
lxxxiii. defaults and cases filed lxxii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest w) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
x) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

lxxxiv. have been issued Recall Notices xviii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
w) Fresh appraisal of the project. No change
x) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
85.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
109. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

86.In respect of co-financed projects, if 110. In respect of co-financed No change.

the other institutions have agreed to projects, if the other institutions have
reschedule the loan for the project. agreed to reschedule the loan for the
project.
87.If the borrower is not in a position to 111. If the borrower is not in a position No change.
service debt on account of impact of to service debt on account of impact of
government policies, effect of government policies, effect of industrial
industrial unrest i.e. strikes, lockouts unrest i.e. strikes, lockouts etc., even if
etc., even if the loan is not co- the loan is not co-financed but the
financed but the borrower is able to borrower is able to satisfy LENDER in this
satisfy LENDER in this regard. regard.
88.If the commissioning of the project is 112. If the commissioning of the No change.
delayed beyond the moratorium project is delayed beyond the
period originally given, for valid moratorium period originally given, for
reasons. valid reasons.
89.For projects which are of pioneering 113. For projects which are of No change.
effort, experimental, demo type, first pioneering effort, experimental, demo
of its kind, involving developmental type, first of its kind, involving
efforts, where technology has not yet developmental efforts, where
stabilized, grid stabilization yet to technology has not yet stabilized, grid
take place etc. stabilization yet to take place etc.
90.If the payments to the borrowers are 114. If the payments to the borrowers No change.
not made by State Electricity Boards are not made by State Electricity Boards
(SEBs) in respect of grid connected (SEBs) in respect of grid connected
projects. projects.

91.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
115. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
116. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
117. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxv. Cases which have been xxv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
lxxxv. faces resource crunch on account of lxxiii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
lxxxvi. makes payment to other lxxiv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
lxxxvii. has not tendered request for lxxv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
lxxxviii. is profit making and dividend paying lxxvi. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
lxxxix. Defaults and criminal action is lxxvii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; kk)entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges ll) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
mm) entire incidental charges including
legal charges ;
 -6-
xc. defaults and cases filed lxxviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest y) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
z) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

xci. have been issued Recall Notices xix. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
y) Fresh appraisal of the project. No change
z) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
92.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
118. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

93.In respect of co-financed projects, if 119. In respect of co-financed No change.

the other institutions have agreed to projects, if the other institutions have
reschedule the loan for the project. agreed to reschedule the loan for the
project.
94.If the borrower is not in a position to 120. If the borrower is not in a position No change.
service debt on account of impact of to service debt on account of impact of
government policies, effect of government policies, effect of industrial
industrial unrest i.e. strikes, lockouts unrest i.e. strikes, lockouts etc., even if
etc., even if the loan is not co- the loan is not co-financed but the
financed but the borrower is able to borrower is able to satisfy LENDER in this
satisfy LENDER in this regard. regard.
95.If the commissioning of the project is 121. If the commissioning of the No change.
delayed beyond the moratorium project is delayed beyond the
period originally given, for valid moratorium period originally given, for
reasons. valid reasons.
96.For projects which are of pioneering 122. For projects which are of No change.
effort, experimental, demo type, first pioneering effort, experimental, demo
of its kind, involving developmental type, first of its kind, involving
efforts, where technology has not yet developmental efforts, where
stabilized, grid stabilization yet to technology has not yet stabilized, grid
take place etc. stabilization yet to take place etc.
97.If the payments to the borrowers are 123. If the payments to the borrowers No change.
not made by State Electricity Boards are not made by State Electricity Boards
(SEBs) in respect of grid connected (SEBs) in respect of grid connected
projects. projects.

98.In case the borrower is able to satisfy
LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
124. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
125. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
126. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxvii. Cases which have been xxvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
xcii. faces resource crunch on account of lxxix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
xciii. makes payment to other lxxx. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
xciv. has not tendered request for lxxxi. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
xcv. is profit making and dividend paying lxxxii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
xcvi. Defaults and criminal action is lxxxiii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; nn) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges oo) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
pp) entire incidental charges including
legal charges ;
 -6-
xcvii. defaults and cases filed lxxxiv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest aa)remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
bb) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

xcviii. have been issued Recall Notices xx. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
aa)Fresh appraisal of the project. No change
bb)Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
99.When the borrower demonstrates that
its ability to service the debt/s has
been adversely affected by an
earthquake, war, fire,flood or
drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
127. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

100. In respect of co-financed 128. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
101. If the borrower is not in a 129. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
102. If the commissioning of the 130. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
103. For projects which are of 131. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
104. If the payments to the 132. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

105. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
133. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
134. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
135. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxix. Cases which have been xxix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxx. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxx. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
xcix. faces resource crunch on account of lxxxv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
c. makes payment to other lxxxvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ci. has not tendered request for lxxxvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cii. is profit making and dividend paying lxxxviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ciii. Defaults and criminal action is lxxxix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; qq) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges rr) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
ss) entire incidental charges including
legal charges ;
 -6-
civ. defaults and cases filed xc. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
cc) remits the entire dues of interest ; The change of condition
less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
dd) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cv. have been issued Recall Notices xxi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
cc) Fresh appraisal of the project. No change
dd)Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
106. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
136. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

107. In respect of co-financed 137. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
108. If the borrower is not in a 138. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
109. If the commissioning of the 139. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
110. For projects which are of 140. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
111. If the payments to the 141. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

112. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
142. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
143. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
144. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxxi. Cases which have been xxxi. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxxii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxxii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cvi. faces resource crunch on account of xci. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cvii. makes payment to other xcii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cviii. has not tendered request for xciii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cix. is profit making and dividend paying xciv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cx. Defaults and criminal action is xcv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; tt) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges uu) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
vv)entire incidental charges including
legal charges ;
 -6-
cxi. defaults and cases filed xcvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
ee) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ff) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cxii. have been issued Recall Notices xxii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ee)Fresh appraisal of the project. No change
ff) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
113. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
145. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

114. In respect of co-financed 146. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
115. If the borrower is not in a 147. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
116. If the commissioning of the 148. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
117. For projects which are of 149. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
118. If the payments to the 150. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

119. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
151. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
152. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
153. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxxiii. Cases which have been xxxiii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxxiv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxxiv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cxiii. faces resource crunch on account of xcvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cxiv. makes payment to other xcviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cxv. has not tendered request for xcix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cxvi. is profit making and dividend paying c. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cxvii. Defaults and criminal action is ci. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; ww) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges xx)50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
yy)entire incidental charges including
legal charges ;
 -6-
cxviii. defaults and cases filed cii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest gg) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
hh) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cxix. have been issued Recall Notices xxiii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
gg) Fresh appraisal of the project. No change
hh)Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
120. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
154. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

121. In respect of co-financed 155. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
122. If the borrower is not in a 156. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
123. If the commissioning of the 157. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
124. For projects which are of 158. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
125. If the payments to the 159. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

126. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
160. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
161. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
162. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxxv. Cases which have been xxxv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxxvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxxvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cxx. faces resource crunch on account of ciii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cxxi. makes payment to other civ. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cxxii. has not tendered request for cv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cxxiii. is profit making and dividend paying cvi. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cxxiv. Defaults and criminal action is cvii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; zz)entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges aaa) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
bbb) entire incidental charges including
legal charges ;
 -6-
cxxv. defaults and cases filed cviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest ii) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
jj) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cxxvi. have been issued Recall Notices xxiv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ii) Fresh appraisal of the project. No change
jj) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
127. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
163. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

128. In respect of co-financed 164. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
129. If the borrower is not in a 165. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
130. If the commissioning of the 166. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
131. For projects which are of 167. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
132. If the payments to the 168. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

133. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
169. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
170. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
171. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxxvii. Cases which have been xxxvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xxxviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xxxviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cxxvii. faces resource crunch on account of cix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cxxviii. makes payment to other cx. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cxxix. has not tendered request for cxi. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cxxx. is profit making and dividend paying cxii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cxxxi. Defaults and criminal action is cxiii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; ccc) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges ddd) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
eee) entire incidental charges including
legal charges ;
 -6-
cxxxii. defaults and cases filed cxiv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest kk)remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ll) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cxxxiii. have been issued Recall Notices xxv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
kk) Fresh appraisal of the project. No change
ll) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
134. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
172. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

135. In respect of co-financed 173. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
136. If the borrower is not in a 174. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
137. If the commissioning of the 175. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
138. For projects which are of 176. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
139. If the payments to the 177. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

140. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
178. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
179. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
180. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xxxix. Cases which have been xxxix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xl. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xl. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cxxxiv. faces resource crunch on account of cxv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cxxxv. makes payment to other cxvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cxxxvi. has not tendered request for cxvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cxxxvii. is profit making and dividend paying cxviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cxxxviii. Defaults and criminal action is cxix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; fff)entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges ggg) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
hhh) entire incidental charges including
legal charges ;
 -6-
cxxxix. defaults and cases filed cxx. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
mm) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
nn) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cxl. have been issued Recall Notices xxvi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
mm) Fresh appraisal of the No change
project. For change of
nn)Approval of the Chairman & designation of MD to
Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
141. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
181. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

142. In respect of co-financed 182. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
143. If the borrower is not in a 183. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
144. If the commissioning of the 184. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
145. For projects which are of 185. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
146. If the payments to the 186. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

147. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
187. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
188. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
189. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xli. Cases which have been xli. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xlii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xlii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cxli. faces resource crunch on account of cxxi. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cxlii. makes payment to other cxxii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cxliii. has not tendered request for cxxiii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cxliv. is profit making and dividend paying cxxiv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cxlv. Defaults and criminal action is cxxv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; iii) entire overdues of interest ; Over The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount due interest of normally not less fact that the
for such instalments. than 25% (*) reschedulment is normally
c) entire incidental charges jjj)50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
kkk) entire incidental charges including
legal charges ;
 -6-
cxlvi. defaults and cases filed cxxvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
oo) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
pp) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cxlvii. have been issued Recall Notices xxvii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
oo)Fresh appraisal of the project. No change
pp)Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
148. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
190. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

149. In respect of co-financed 191. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
150. If the borrower is not in a 192. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
151. If the commissioning of the 193. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
152. For projects which are of 194. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
153. If the payments to the 195. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

154. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
196. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
197. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
198. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xliii. Cases which have been xliii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xliv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xliv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cxlviii. faces resource crunch on account of cxxvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cxlix. makes payment to other cxxviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cl. has not tendered request for cxxix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

cli. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
clii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
cxxx. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
cxxxi. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
lll) entire overdues of interest ; Over
due interest of normally not less
than 25% (*)
mmm) 50% of the Principal Loan
amount for such instalments.
nnn) entire incidental charges including
legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
cliii. defaults and cases filed cxxxii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest qq) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
rr) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cliv. have been issued Recall Notices xxviii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
qq)Fresh appraisal of the project. No change
rr) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
155. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
199. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

156. In respect of co-financed 200. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
157. If the borrower is not in a 201. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
158. If the commissioning of the 202. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
159. For projects which are of 203. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
160. If the payments to the 204. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

161. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
205. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
206. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
207. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xlv. Cases which have been xlv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xlvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xlvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
clv. faces resource crunch on account of cxxxiii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
clvi. makes payment to other cxxxiv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
clvii. has not tendered request for cxxxv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
clviii. is profit making and dividend paying cxxxvi. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
clix. Defaults and criminal action is cxxxvii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; ooo) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges ppp) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
qqq) entire incidental charges including
legal charges ;
 -6-
clx. defaults and cases filed cxxxviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest ss) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
tt) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

clxi. have been issued Recall Notices xxix. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ss) Fresh appraisal of the project. No change
tt) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
162. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
208. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

163. In respect of co-financed 209. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
164. If the borrower is not in a 210. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
165. If the commissioning of the 211. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
166. For projects which are of 212. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
167. If the payments to the 213. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

168. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
214. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
215. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
216. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xlvii. Cases which have been xlvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xlviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xlviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
clxii. faces resource crunch on account of cxxxix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
clxiii. makes payment to other cxl. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
clxiv. has not tendered request for cxli. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
clxv. is profit making and dividend paying cxlii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
clxvi. Defaults and criminal action is cxliii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; rrr) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges sss) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
ttt) entire incidental charges including
legal charges ;
 -6-
clxvii. defaults and cases filed cxliv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
uu) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
vv)remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

clxviii. have been issued Recall Notices xxx. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
uu)Fresh appraisal of the project. No change
vv) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
169. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
217. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

170. In respect of co-financed 218. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
171. If the borrower is not in a 219. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
172. If the commissioning of the 220. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
173. For projects which are of 221. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
174. If the payments to the 222. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

175. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
223. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
224. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
225. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xlix. Cases which have been xlix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
l. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
l. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
clxix. faces resource crunch on account of cxlv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
clxx. makes payment to other cxlvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
clxxi. has not tendered request for cxlvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

clxxii. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
clxxiii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
cxlviii. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
cxlix. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
uuu) entire overdues of interest ;
Over due interest of normally not
less than 25% (*)
vvv) 50% of the Principal Loan amount
for such instalments.
www) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
clxxiv. defaults and cases filed cl. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
ww)remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
xx)remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

clxxv. have been issued Recall Notices xxxi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ww) Fresh appraisal of the No change
project. For change of
xx) Approval of the Chairman & designation of MD to
Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
176. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
226. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

177. In respect of co-financed 227. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
178. If the borrower is not in a 228. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
179. If the commissioning of the 229. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
180. For projects which are of 230. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
181. If the payments to the 231. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

182. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
232. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
233. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
234. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

li. Cases which have been li. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
clxxvi. faces resource crunch on account of cli. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
clxxvii. makes payment to other clii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
clxxviii. has not tendered request for cliii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
clxxix. is profit making and dividend paying cliv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
clxxx. Defaults and criminal action is clv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; xxx) entire overdues of interest ; The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount Over due interest of normally not fact that the
for such instalments. less than 25% (*) reschedulment is normally
c) entire incidental charges yyy) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
zzz) entire incidental charges including
legal charges ;
 -6-
clxxxi. defaults and cases filed clvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest yy)remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
zz)remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

clxxxii. have been issued Recall Notices xxxii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
yy) Fresh appraisal of the project. No change
zz) Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
183. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
235. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

184. In respect of co-financed 236. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
185. If the borrower is not in a 237. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
186. If the commissioning of the 238. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
187. For projects which are of 239. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
188. If the payments to the 240. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

189. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
241. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
242. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
243. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

liii. Cases which have been liii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
liv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
liv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
clxxxiii. faces resource crunch on account of clvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
clxxxiv. makes payment to other clviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
clxxxv. has not tendered request for clix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
clxxxvi. is profit making and dividend paying clx. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
clxxxvii. Defaults and criminal action is clxi. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; aaaa) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges bbbb) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
cccc) entire incidental charges
including legal charges ;
 -6-
clxxxviii. defaults and cases filed clxii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest aaa) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
bbb) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

clxxxix. have been issued Recall Notices xxxiii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
aaa) Fresh appraisal of the No change
project. For change of
bbb) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
190. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
244. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

191. In respect of co-financed 245. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
192. If the borrower is not in a 246. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
193. If the commissioning of the 247. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
194. For projects which are of 248. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
195. If the payments to the 249. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

196. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
250. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
251. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
252. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lv. Cases which have been lv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cxc. faces resource crunch on account of clxiii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cxci. makes payment to other clxiv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cxcii. has not tendered request for clxv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cxciii. is profit making and dividend paying clxvi. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cxciv. Defaults and criminal action is clxvii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; dddd) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges eeee) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
ffff) entire incidental charges including
legal charges ;
 -6-
cxcv. defaults and cases filed clxviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest ccc)remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ddd) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cxcvi. have been issued Recall Notices xxxiv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ccc) Fresh appraisal of the No change
project. For change of
ddd) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
197. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
253. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

198. In respect of co-financed 254. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
199. If the borrower is not in a 255. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
200. If the commissioning of the 256. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
201. For projects which are of 257. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
202. If the payments to the 258. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

203. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
259. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
260. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
261. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lvii. Cases which have been lvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cxcvii. faces resource crunch on account of clxix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cxcviii. makes payment to other clxx. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cxcix. has not tendered request for clxxi. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

cc. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
cci. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
clxxii. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
clxxiii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
gggg)entire overdues of interest ;
Over due interest of normally not
less than 25% (*)
hhhh) 50% of the Principal Loan
amount for such instalments.
iiii) entire incidental charges including
legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
ccii. defaults and cases filed clxxiv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest eee) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
fff)remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cciii. have been issued Recall Notices xxxv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
eee) Fresh appraisal of the No change
project. For change of
fff)Approval of the Chairman & designation of MD to
Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
204. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
262. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

205. In respect of co-financed 263. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
206. If the borrower is not in a 264. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
207. If the commissioning of the 265. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
208. For projects which are of 266. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
209. If the payments to the 267. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

210. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
268. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
269. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
270. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lix. Cases which have been lix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lx. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lx. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cciv. faces resource crunch on account of clxxv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccv. makes payment to other clxxvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccvi. has not tendered request for clxxvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

ccvii. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
ccviii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
clxxviii. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
clxxix. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
jjjj) entire overdues of interest ;
Over due interest of normally not
less than 25% (*)
kkkk) 50% of the Principal Loan
amount for such instalments.
llll) entire incidental charges including
legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
ccix. defaults and cases filed clxxx. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
ggg)remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
hhh) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccx. have been issued Recall Notices xxxvi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ggg) Fresh appraisal of the No change
project. For change of
hhh) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
211. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
271. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

212. In respect of co-financed 272. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
213. If the borrower is not in a 273. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
214. If the commissioning of the 274. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
215. For projects which are of 275. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
216. If the payments to the 276. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

217. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
277. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
278. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
279. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxi. Cases which have been lxi. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccxi. faces resource crunch on account of clxxxi. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccxii. makes payment to other clxxxii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccxiii. has not tendered request for clxxxiii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccxiv. is profit making and dividend paying clxxxiv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccxv. Defaults and criminal action is clxxxv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; mmmm) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges nnnn) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
oooo) entire incidental charges
including legal charges ;
 -6-
ccxvi. defaults and cases filed clxxxvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest iii) remits the entire dues of interest ; The change of condition
; Over due interest of normally not (a) is proposed due to the
b) remits the entire incidental and less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
jjj)remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccxvii. have been issued Recall Notices xxxvii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
iii) Fresh appraisal of the project. No change
jjj)Approval of the Chairman & For change of
Managing Director/Board as the designation of MD to
case may be. CMD
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
218. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
280. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

219. In respect of co-financed 281. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
220. If the borrower is not in a 282. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
221. If the commissioning of the 283. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
222. For projects which are of 284. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
223. If the payments to the 285. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

224. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
286. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
287. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
288. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxiii. Cases which have been lxiii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxiv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxiv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccxviii. faces resource crunch on account of clxxxvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccxix. makes payment to other clxxxviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccxx. has not tendered request for clxxxix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccxxi. is profit making and dividend paying cxc. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccxxii. Defaults and criminal action is cxci. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; pppp) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges qqqq) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
rrrr) entire incidental charges including
legal charges ;
 -6-
ccxxiii. defaults and cases filed cxcii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
kkk) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
lll) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccxxiv. have been issued Recall Notices xxxviii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
kkk) Fresh appraisal of the No change
project. For change of
lll) Approval of the Chairman & designation of MD to
Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
225. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
289. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

226. In respect of co-financed 290. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
227. If the borrower is not in a 291. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
228. If the commissioning of the 292. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
229. For projects which are of 293. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
230. If the payments to the 294. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

231. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
295. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
296. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
297. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxv. Cases which have been lxv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccxxv. faces resource crunch on account of cxciii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccxxvi. makes payment to other cxciv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccxxvii. has not tendered request for cxcv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

ccxxviii. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
ccxxix. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
cxcvi. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
cxcvii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
ssss) entire overdues of interest ;
Over due interest of normally not
less than 25% (*)
tttt) 50% of the Principal Loan amount
for such instalments.
uuuu) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
ccxxx. defaults and cases filed cxcviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest mmm) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
nnn) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccxxxi. have been issued Recall Notices xxxix. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
mmm) Fresh appraisal of the No change
project. For change of
nnn) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
232. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
298. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

233. In respect of co-financed 299. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
234. If the borrower is not in a 300. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
235. If the commissioning of the 301. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
236. For projects which are of 302. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
237. If the payments to the 303. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

238. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
304. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
305. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
306. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxvii. Cases which have been lxvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccxxxii. faces resource crunch on account of cxcix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccxxxiii. makes payment to other cc. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccxxxiv. has not tendered request for cci. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccxxxv. is profit making and dividend paying ccii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccxxxvi. Defaults and criminal action is cciii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; vvvv) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges wwww) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
xxxx) entire incidental charges
including legal charges ;
 -6-
ccxxxvii. defaults and cases filed cciv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest ooo) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ppp) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccxxxviii. have been issued Recall Notices xl. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ooo) Fresh appraisal of the No change
project. For change of
ppp) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
239. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
307. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

240. In respect of co-financed 308. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
241. If the borrower is not in a 309. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
242. If the commissioning of the 310. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
243. For projects which are of 311. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
244. If the payments to the 312. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

245. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
313. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
314. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
315. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxix. Cases which have been lxix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxx. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxx. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccxxxix. faces resource crunch on account of ccv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccxl. makes payment to other ccvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccxli. has not tendered request for ccvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccxlii. is profit making and dividend paying ccviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccxliii. Defaults and criminal action is ccix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; yyyy) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges zzzz) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
aaaaa) entire incidental charges
including legal charges ;
 -6-
ccxliv. defaults and cases filed ccx. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
qqq) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
rrr) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccxlv. have been issued Recall Notices xli. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
qqq) Fresh appraisal of the No change
project. For change of
rrr) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
246. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
316. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

247. In respect of co-financed 317. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
248. If the borrower is not in a 318. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
249. If the commissioning of the 319. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
250. For projects which are of 320. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
251. If the payments to the 321. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

252. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
322. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
323. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
324. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxi. Cases which have been lxxi. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccxlvi. faces resource crunch on account of ccxi. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccxlvii. makes payment to other ccxii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccxlviii. has not tendered request for ccxiii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccxlix. is profit making and dividend paying ccxiv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccl. Defaults and criminal action is ccxv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; bbbbb) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges ccccc) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
ddddd) entire incidental charges
including legal charges ;
 -6-
ccli. defaults and cases filed ccxvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
sss) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ttt) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cclii. have been issued Recall Notices xlii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
sss) Fresh appraisal of the No change
project. For change of
ttt) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
253. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
325. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

254. In respect of co-financed 326. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
255. If the borrower is not in a 327. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
256. If the commissioning of the 328. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
257. For projects which are of 329. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
258. If the payments to the 330. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

259. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
331. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
332. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
333. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxiii. Cases which have been lxxiii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxiv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxiv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccliii. faces resource crunch on account of ccxvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccliv. makes payment to other ccxviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cclv. has not tendered request for ccxix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cclvi. is profit making and dividend paying ccxx. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cclvii. Defaults and criminal action is ccxxi. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; eeeee) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges fffff) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
ggggg) entire incidental charges
including legal charges ;
 -6-
cclviii. defaults and cases filed ccxxii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest uuu) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
vvv) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cclix. have been issued Recall Notices xliii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
uuu) Fresh appraisal of the No change
project. For change of
vvv) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
260. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
334. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

261. In respect of co-financed 335. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
262. If the borrower is not in a 336. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
263. If the commissioning of the 337. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
264. For projects which are of 338. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
265. If the payments to the 339. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

266. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
340. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
341. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
342. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxv. Cases which have been lxxv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cclx. faces resource crunch on account of ccxxiii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cclxi. makes payment to other ccxxiv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cclxii. has not tendered request for ccxxv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cclxiii. is profit making and dividend paying ccxxvi. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cclxiv. Defaults and criminal action is ccxxvii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; hhhhh) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges iiiii) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
jjjjj) entire incidental charges including
legal charges ;
 -6-
cclxv. defaults and cases filed ccxxviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest www) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
xxx) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cclxvi. have been issued Recall Notices xliv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
www) Fresh appraisal of the No change
project. For change of
xxx) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
267. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
343. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

268. In respect of co-financed 344. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
269. If the borrower is not in a 345. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
270. If the commissioning of the 346. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
271. For projects which are of 347. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
272. If the payments to the 348. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

273. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
349. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
350. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
351. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxvii. Cases which have been lxxvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cclxvii. faces resource crunch on account of ccxxix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cclxviii. makes payment to other ccxxx. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cclxix. has not tendered request for ccxxxi. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cclxx. is profit making and dividend paying ccxxxii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cclxxi. Defaults and criminal action is ccxxxiii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; kkkkk) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges lllll) 50% of the Principal Loan amount resorted to when the
including legal charges ; for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
mmmmm) entire incidental charges
including legal charges ;
 -6-
cclxxii. defaults and cases filed ccxxxiv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest yyy) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
zzz) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cclxxiii. have been issued Recall Notices xlv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
yyy) Fresh appraisal of the No change
project. For change of
zzz) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
274. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
352. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

275. In respect of co-financed 353. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
276. If the borrower is not in a 354. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
277. If the commissioning of the 355. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
278. For projects which are of 356. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
279. If the payments to the 357. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

280. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
358. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
359. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
360. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxix. Cases which have been lxxix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxx. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxx. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cclxxiv. faces resource crunch on account of ccxxxv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cclxxv. makes payment to other ccxxxvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cclxxvi. has not tendered request for ccxxxvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cclxxvii. is profit making and dividend paying ccxxxviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cclxxviii. Defaults and criminal action is ccxxxix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; nnnnn) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges ooooo) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
ppppp) entire incidental charges
including legal charges ;
 -6-
cclxxix. defaults and cases filed ccxl. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest aaaa) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
bbbb) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cclxxx. have been issued Recall Notices xlvi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
aaaa) Fresh appraisal of the No change
project. For change of
bbbb) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
281. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
361. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

282. In respect of co-financed 362. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
283. If the borrower is not in a 363. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
284. If the commissioning of the 364. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
285. For projects which are of 365. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
286. If the payments to the 366. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

287. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
367. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
368. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
369. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxxi. Cases which have been lxxxi. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxxii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxxii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cclxxxi. faces resource crunch on account of ccxli. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cclxxxii. makes payment to other ccxlii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cclxxxiii. has not tendered request for ccxliii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cclxxxiv. is profit making and dividend paying ccxliv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cclxxxv. Defaults and criminal action is ccxlv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; qqqqq) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges rrrrr) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
sssss) entire incidental charges
including legal charges ;
 -6-
cclxxxvi. defaults and cases filed ccxlvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest cccc) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
dddd) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cclxxxvii. have been issued Recall Notices xlvii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
cccc) Fresh appraisal of the No change
project. For change of
dddd) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
288. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
370. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

289. In respect of co-financed 371. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
290. If the borrower is not in a 372. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
291. If the commissioning of the 373. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
292. For projects which are of 374. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
293. If the payments to the 375. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

294. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
376. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
377. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
378. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxxiii. Cases which have been lxxxiii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxxiv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxxiv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cclxxxviii. faces resource crunch on account of ccxlvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cclxxxix. makes payment to other ccxlviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccxc. has not tendered request for ccxlix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

ccxci. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
ccxcii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
ccl. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
ccli. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
ttttt)entire overdues of interest ;
Over due interest of normally not
less than 25% (*)
uuuuu) 50% of the Principal Loan
amount for such instalments.
vvvvv) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
ccxciii. defaults and cases filed cclii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
eeee) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ffff) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccxciv. have been issued Recall Notices xlviii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
eeee) Fresh appraisal of the No change
project. For change of
ffff) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
295. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
379. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

296. In respect of co-financed 380. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
297. If the borrower is not in a 381. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
298. If the commissioning of the 382. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
299. For projects which are of 383. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
300. If the payments to the 384. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

301. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
385. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
386. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
387. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxxv. Cases which have been lxxxv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxxvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxxvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccxcv. faces resource crunch on account of ccliii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccxcvi. makes payment to other ccliv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccxcvii. has not tendered request for cclv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccxcviii. is profit making and dividend paying cclvi. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccxcix. Defaults and criminal action is cclvii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; wwwww) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges xxxxx) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
yyyyy) entire incidental charges
including legal charges ;
 -6-
ccc. defaults and cases filed cclviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest gggg) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
hhhh) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccci. have been issued Recall Notices xlix. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
gggg) Fresh appraisal of the No change
project. For change of
hhhh) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
302. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
388. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

303. In respect of co-financed 389. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
304. If the borrower is not in a 390. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
305. If the commissioning of the 391. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
306. For projects which are of 392. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
307. If the payments to the 393. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

308. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
394. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
395. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
396. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxxvii. Cases which have been lxxxvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
lxxxviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
lxxxviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccii. faces resource crunch on account of cclix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccciii. makes payment to other cclx. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccciv. has not tendered request for cclxi. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cccv. is profit making and dividend paying cclxii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cccvi. Defaults and criminal action is cclxiii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; zzzzz) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges aaaaaa) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
bbbbbb) entire incidental charges
including legal charges ;
 -6-
cccvii. defaults and cases filed cclxiv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest iiii) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
jjjj) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccviii. have been issued Recall Notices l. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
iiii) Fresh appraisal of the No change
project. For change of
jjjj) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
309. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
397. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

310. In respect of co-financed 398. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
311. If the borrower is not in a 399. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
312. If the commissioning of the 400. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
313. For projects which are of 401. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
314. If the payments to the 402. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

315. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
403. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
404. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
405. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

lxxxix. Cases which have been lxxxix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xc. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xc. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccix. faces resource crunch on account of cclxv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cccx. makes payment to other cclxvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cccxi. has not tendered request for cclxvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cccxii. is profit making and dividend paying cclxviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cccxiii. Defaults and criminal action is cclxix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; cccccc) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges dddddd) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
eeeeee) entire incidental charges
including legal charges ;
 -6-
cccxiv. defaults and cases filed cclxx. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
kkkk) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
llll) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccxv. have been issued Recall Notices li. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
kkkk) Fresh appraisal of the No change
project. For change of
llll) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
316. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
406. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

317. In respect of co-financed 407. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
318. If the borrower is not in a 408. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
319. If the commissioning of the 409. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
320. For projects which are of 410. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
321. If the payments to the 411. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

322. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
412. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
413. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
414. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xci. Cases which have been xci. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xcii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xcii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccxvi. faces resource crunch on account of cclxxi. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cccxvii. makes payment to other cclxxii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cccxviii. has not tendered request for cclxxiii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cccxix. is profit making and dividend paying cclxxiv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cccxx. Defaults and criminal action is cclxxv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; ffffff) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges gggggg) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
hhhhhh) entire incidental charges
including legal charges ;
 -6-
cccxxi. defaults and cases filed cclxxvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest mmmm) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
nnnn) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccxxii. have been issued Recall Notices lii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
mmmm) Fresh appraisal of the No change
project. For change of
nnnn) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
323. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
415. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

324. In respect of co-financed 416. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
325. If the borrower is not in a 417. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
326. If the commissioning of the 418. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
327. For projects which are of 419. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
328. If the payments to the 420. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

329. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
421. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
422. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
423. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xciii. Cases which have been xciii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xciv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xciv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccxxiii. faces resource crunch on account of cclxxvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cccxxiv. makes payment to other cclxxviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cccxxv. has not tendered request for cclxxix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

cccxxvi. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
cccxxvii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
cclxxx. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
cclxxxi. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
iiiiii) entire overdues of interest ;
Over due interest of normally not
less than 25% (*)
jjjjjj) 50% of the Principal Loan
amount for such instalments.
kkkkkk) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
cccxxviii. defaults and cases filed cclxxxii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest oooo) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
pppp) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccxxix. have been issued Recall Notices liii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
oooo) Fresh appraisal of the No change
project. For change of
pppp) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
330. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
424. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

331. In respect of co-financed 425. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
332. If the borrower is not in a 426. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
333. If the commissioning of the 427. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
334. For projects which are of 428. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
335. If the payments to the 429. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

336. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
430. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
431. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
432. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xcv. Cases which have been xcv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xcvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xcvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccxxx. faces resource crunch on account of cclxxxiii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cccxxxi. makes payment to other cclxxxiv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cccxxxii. has not tendered request for cclxxxv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cccxxxiii. is profit making and dividend paying cclxxxvi. is profit making and dividend
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cccxxxiv. Defaults and criminal action is cclxxxvii. Defaults and criminal action is
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :
a) entire overdues of interest ; llllll) entire overdues of interest ;
b) 50% of the Principal Loan amount Over due interest of normally not
for such instalments. less than 25% (*)
c) entire incidental charges mmmmmm) 50% of the Principal
including legal charges ; Loan amount for such instalments.
nnnnnn) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
cccxxxv. defaults and cases filed cclxxxviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
qqqq) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
rrrr) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccxxxvi. have been issued Recall Notices liv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
qqqq) Fresh appraisal of the No change
project. For change of
rrrr) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
337. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
433. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

338. In respect of co-financed 434. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
339. If the borrower is not in a 435. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
340. If the commissioning of the 436. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
341. For projects which are of 437. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
342. If the payments to the 438. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

343. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
439. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
440. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
441. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xcvii. Cases which have been xcvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
xcviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
xcviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccxxxvii. faces resource crunch on account of cclxxxix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cccxxxviii. makes payment to other ccxc. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cccxxxix. has not tendered request for ccxci. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cccxl. is profit making and dividend paying ccxcii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cccxli. Defaults and criminal action is ccxciii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; oooooo) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges pppppp) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
qqqqqq) entire incidental charges
including legal charges ;
 -6-
cccxlii. defaults and cases filed ccxciv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest ssss) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
tttt) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccxliii. have been issued Recall Notices lv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ssss) Fresh appraisal of the No change
project. For change of
tttt) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
344. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
442. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

345. In respect of co-financed 443. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
346. If the borrower is not in a 444. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
347. If the commissioning of the 445. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
348. For projects which are of 446. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
349. If the payments to the 447. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

350. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
448. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
449. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
450. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

xcix. Cases which have been xcix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
c. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
c. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccxliv. faces resource crunch on account of ccxcv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cccxlv. makes payment to other ccxcvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cccxlvi. has not tendered request for ccxcvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cccxlvii. is profit making and dividend paying ccxcviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cccxlviii. Defaults and criminal action is ccxcix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; rrrrrr) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges ssssss) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
tttttt) entire incidental charges
including legal charges ;
 -6-
cccxlix. defaults and cases filed ccc. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest uuuu) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
vvvv) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccl. have been issued Recall Notices lvi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
uuuu) Fresh appraisal of the No change
project. For change of
vvvv) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
351. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
451. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

352. In respect of co-financed 452. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
353. If the borrower is not in a 453. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
354. If the commissioning of the 454. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
355. For projects which are of 455. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
356. If the payments to the 456. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

357. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
457. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
458. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
459. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

ci. Cases which have been ci. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccli. faces resource crunch on account of ccci. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccclii. makes payment to other cccii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cccliii. has not tendered request for ccciii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

cccliv. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
ccclv. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
ccciv. is profit making and dividend No change.
paying (unless the overdues relating
to interest are cleared);
cccv. Defaults and criminal action is No change
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
uuuuuu) entire overdues of The change of (a) and (b)
are proposed due to the
interest ; Over due interest of fact that the
normally not less than 25% (*) reschedulment is normally
vvvvvv) 50% of the Principal Loan resorted to when the
amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
wwwwww) entire incidental charges
including legal charges ;
 -6-
ccclvi. defaults and cases filed cccvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
wwww) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
xxxx) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccclvii. have been issued Recall Notices lvii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
wwww) Fresh appraisal of the No change
project. For change of
xxxx) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
358. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
460. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

359. In respect of co-financed 461. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
360. If the borrower is not in a 462. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
361. If the commissioning of the 463. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
362. For projects which are of 464. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
363. If the payments to the 465. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

364. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
466. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
467. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
468. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

ciii. Cases which have been ciii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
civ. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
civ. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccclviii. faces resource crunch on account of cccvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccclix. makes payment to other cccviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccclx. has not tendered request for cccix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccclxi. is profit making and dividend paying cccx. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccclxii. Defaults and criminal action is cccxi. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; xxxxxx) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges yyyyyy) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
zzzzzz) entire incidental charges
including legal charges ;
 -6-
ccclxiii. defaults and cases filed cccxii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest yyyy) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
zzzz) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccclxiv. have been issued Recall Notices lviii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
yyyy) Fresh appraisal of the No change
project. For change of
zzzz) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
365. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
469. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

366. In respect of co-financed 470. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
367. If the borrower is not in a 471. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
368. If the commissioning of the 472. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
369. For projects which are of 473. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
370. If the payments to the 474. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

371. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
475. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
476. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
477. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cv. Cases which have been cv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccclxv. faces resource crunch on account of cccxiii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccclxvi. makes payment to other cccxiv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccclxvii. has not tendered request for cccxv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

ccclxviii. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
ccclxix. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
cccxvi. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
cccxvii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
aaaaaaa) entire overdues of
interest ; Over due interest of
normally not less than 25% (*)
bbbbbbb) 50% of the Principal Loan
amount for such instalments.
ccccccc) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
ccclxx. defaults and cases filed cccxviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest aaaaa) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
bbbbb) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccclxxi. have been issued Recall Notices lix. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
aaaaa) Fresh appraisal of the No change
project. For change of
bbbbb) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
372. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
478. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

373. In respect of co-financed 479. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
374. If the borrower is not in a 480. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
375. If the commissioning of the 481. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
376. For projects which are of 482. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
377. If the payments to the 483. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

378. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
484. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
485. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
486. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cvii. Cases which have been cvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccclxxii. faces resource crunch on account of cccxix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccclxxiii. makes payment to other cccxx. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccclxxiv. has not tendered request for cccxxi. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccclxxv. is profit making and dividend paying cccxxii. is profit making and dividend
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccclxxvi. Defaults and criminal action is cccxxiii. Defaults and criminal action is
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :
a) entire overdues of interest ; ddddddd) entire overdues of
b) 50% of the Principal Loan amount interest ; Over due interest of
for such instalments. normally not less than 25% (*)
c) entire incidental charges eeeeeee) 50% of the Principal Loan
including legal charges ; amount for such instalments.
fffffff) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
ccclxxvii. defaults and cases filed cccxxiv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest ccccc) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ddddd) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccclxxviii. have been issued Recall Notices lx. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ccccc) Fresh appraisal of the No change
project. For change of
ddddd) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
379. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
487. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

380. In respect of co-financed 488. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
381. If the borrower is not in a 489. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
382. If the commissioning of the 490. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
383. For projects which are of 491. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
384. If the payments to the 492. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

385. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
493. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
494. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
495. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cix. Cases which have been cix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cx. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cx. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccclxxix. faces resource crunch on account of cccxxv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccclxxx. makes payment to other cccxxvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccclxxxi. has not tendered request for cccxxvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccclxxxii. is profit making and dividend paying cccxxviii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
ccclxxxiii. Defaults and criminal action is cccxxix. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; ggggggg) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges hhhhhhh) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
iiiiiii) entire incidental charges
including legal charges ;
 -6-
ccclxxxiv. defaults and cases filed cccxxx. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest eeeee) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
fffff) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

ccclxxxv. have been issued Recall Notices lxi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
eeeee) Fresh appraisal of the No change
project. For change of
fffff) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
386. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
496. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

387. In respect of co-financed 497. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
388. If the borrower is not in a 498. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
389. If the commissioning of the 499. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
390. For projects which are of 500. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
391. If the payments to the 501. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

392. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
502. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
503. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
504. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxi. Cases which have been cxi. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
ccclxxxvi. faces resource crunch on account of cccxxxi. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
ccclxxxvii. makes payment to other cccxxxii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
ccclxxxviii. has not tendered request for cccxxxiii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
ccclxxxix. is profit making and dividend paying cccxxxiv. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cccxc. Defaults and criminal action is cccxxxv. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; jjjjjjj) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges kkkkkkk) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
lllllll) entire incidental charges
including legal charges ;
 -6-
cccxci. defaults and cases filed cccxxxvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
ggggg) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
hhhhh) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccxcii. have been issued Recall Notices lxii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ggggg) Fresh appraisal of the No change
project. For change of
hhhhh) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
393. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
505. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

394. In respect of co-financed 506. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
395. If the borrower is not in a 507. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
396. If the commissioning of the 508. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
397. For projects which are of 509. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
398. If the payments to the 510. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

399. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
511. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
512. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
513. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxiii. Cases which have been cxiii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxiv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxiv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cccxciii. faces resource crunch on account of cccxxxvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cccxciv. makes payment to othercccxxxviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cccxcv. has not tendered request for cccxxxix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

cccxcvi. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
cccxcvii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
cccxl. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
cccxli. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
mmmmmmm) entire overdues of
interest ; Over due interest of
normally not less than 25% (*)
nnnnnnn) 50% of the Principal Loan
amount for such instalments.
ooooooo) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
cccxcviii. defaults and cases filed cccxlii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest iiiii)remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
jjjjj) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cccxcix. have been issued Recall Notices lxiii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
iiiii) Fresh appraisal of the No change
project. For change of
jjjjj) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
400. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
514. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

401. In respect of co-financed 515. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
402. If the borrower is not in a 516. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
403. If the commissioning of the 517. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
404. For projects which are of 518. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
405. If the payments to the 519. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

406. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
520. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
521. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
522. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxv. Cases which have been cxv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cd. faces resource crunch on account of cccxliii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cdi. makes payment to other cccxliv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cdii. has not tendered request for cccxlv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cdiii. is profit making and dividend paying cccxlvi. is profit making and dividend
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cdiv. Defaults and criminal action is cccxlvii. Defaults and criminal action is
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :
a) entire overdues of interest ; ppppppp) entire overdues of
b) 50% of the Principal Loan amount interest ; Over due interest of
for such instalments. normally not less than 25% (*)
c) entire incidental charges qqqqqqq) 50% of the Principal Loan
including legal charges ; amount for such instalments.
rrrrrrr) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
cdv. defaults and cases filed cccxlviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
kkkkk) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
lllll) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cdvi. have been issued Recall Notices lxiv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
kkkkk) Fresh appraisal of the No change
project. For change of
lllll) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
407. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
523. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

408. In respect of co-financed 524. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
409. If the borrower is not in a 525. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
410. If the commissioning of the 526. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
411. For projects which are of 527. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
412. If the payments to the 528. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

413. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
529. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
530. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
531. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxvii. Cases which have been cxvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cdvii. faces resource crunch on account of cccxlix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cdviii. makes payment to other cccl. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cdix. has not tendered request for cccli. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cdx. is profit making and dividend paying ccclii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cdxi. Defaults and criminal action is cccliii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; sssssss) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges ttttttt) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
uuuuuuu) entire incidental charges
including legal charges ;
 -6-
cdxii. defaults and cases filed cccliv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest mmmmm) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
nnnnn) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cdxiii. have been issued Recall Notices lxv. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.
 -8-

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to : subject to :
a) Fresh appraisal of the project. mmmmm) Fresh appraisal of No change
the project. For change of
b) Approval of the Managing nnnnn) Approval of the Chairman designation of MD to
Director/Board as the case may be. & Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : (IV) In case of rescheduling, LENDER shall : No change.

 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
414. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
532. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

415. In respect of co-financed 533. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
416. If the borrower is not in a 534. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
417. If the commissioning of the 535. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
418. For projects which are of 536. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
419. If the payments to the 537. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

420. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
538. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
539. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
540. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxix. Cases which have been cxix. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxx. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxx. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cdxiv. faces resource crunch on account of ccclv. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cdxv. makes payment to other ccclvi. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cdxvi. has not tendered request for ccclvii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

cdxvii. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
cdxviii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
ccclviii. is profit making and dividend No change.
paying (unless the overdues relating
to interest are cleared);
ccclix. Defaults and criminal action is No change
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
vvvvvvv) entire overdues of The change of (a) and (b)
are proposed due to the
interest ; Over due interest of fact that the
normally not less than 25% (*) reschedulment is normally
wwwwwww) 50% of the Principal resorted to when the
Loan amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
xxxxxxx) entire incidental charges
including legal charges ;
 -6-
cdxix. defaults and cases filed ccclx. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest ooooo) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ppppp) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cdxx. have been issued Recall Notices lxvi. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
ooooo) Fresh appraisal of the No change
project. For change of
ppppp) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
421. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
541. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

422. In respect of co-financed 542. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
423. If the borrower is not in a 543. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
424. If the commissioning of the 544. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
425. For projects which are of 545. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
426. If the payments to the 546. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

427. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
547. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
548. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
549. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxxi. Cases which have been cxxi. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxxii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxxii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cdxxi. faces resource crunch on account of ccclxi. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cdxxii. makes payment to other ccclxii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cdxxiii. has not tendered request for ccclxiii. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

cdxxiv. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
cdxxv. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
ccclxiv. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
ccclxv. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
yyyyyyy) entire overdues of
interest ; Over due interest of
normally not less than 25% (*)
zzzzzzz) 50% of the Principal Loan
amount for such instalments.
aaaaaaaa) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
cdxxvi. defaults and cases filed ccclxvi. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest qqqqq) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
rrrrr) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cdxxvii. have been issued Recall Notices lxvii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
qqqqq) Fresh appraisal of the No change
project. For change of
rrrrr) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
428. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
550. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

429. In respect of co-financed 551. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
430. If the borrower is not in a 552. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
431. If the commissioning of the 553. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
432. For projects which are of 554. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
433. If the payments to the 555. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

434. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
556. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
557. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
558. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxxiii. Cases which have been cxxiii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxxiv. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxxiv. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cdxxviii. faces resource crunch on account of ccclxvii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cdxxix. makes payment to other ccclxviii. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cdxxx. has not tendered request for ccclxix. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;

cdxxxi. is profit making and dividend paying
(unless the overdues relating to
interest are cleared);
cdxxxii. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
a) entire overdues of interest ;
b) 50% of the Principal Loan amount
for such instalments.
c) entire incidental charges
including legal charges ;
-5-
ccclxx. is profit making and dividend
paying (unless the overdues relating
to interest are cleared);
ccclxxi. Defaults and criminal action is
initiated under Negotiable
Instruments Act for dishonour of
cheques unless the borrower remits
the :
bbbbbbbb) entire overdues of
interest ; Over due interest of
normally not less than 25% (*)
cccccccc) 50% of the Principal Loan
amount for such instalments.
dddddddd) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
cdxxxiii. defaults and cases filed ccclxxii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest sssss) remits the entire dues of The change of condition
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and normally not less than 25% (*) fact that the
reschedulment is normally
legal charges and agreement is resorted to when the
entered into for the balance borrower demonstrates his
amount with the approval of the inability to service the
Court. dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
ttttt) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cdxxxiv. have been issued Recall Notices lxviii. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
sssss) Fresh appraisal of the No change
project. For change of
ttttt) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
435. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
559. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

436. In respect of co-financed 560. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
437. If the borrower is not in a 561. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
438. If the commissioning of the 562. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
439. For projects which are of 563. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
440. If the payments to the 564. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

441. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
565. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
566. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
567. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxxv. Cases which have been cxxv. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxxvi. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxxvi. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cdxxxv. faces resource crunch on account of ccclxxiii. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cdxxxvi. makes payment to other ccclxxiv. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cdxxxvii. has not tendered request for ccclxxv. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cdxxxviii. is profit making and dividend paying ccclxxvi. is profit making and dividend
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cdxxxix. Defaults and criminal action is ccclxxvii. Defaults and criminal action is
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :
a) entire overdues of interest ; eeeeeeee) entire overdues of
b) 50% of the Principal Loan amount interest ; Over due interest of
for such instalments. normally not less than 25% (*)
c) entire incidental charges ffffffff) 50% of the Principal Loan
including legal charges ; amount for such instalments.
gggggggg) entire incidental charges
including legal charges ;
No change.
No change
The change of (a) and (b)
are proposed due to the
fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
 -6-
cdxl. defaults and cases filed ccclxxviii. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
uuuuu) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
vvvvv) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cdxli. have been issued Recall Notices lxix. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
uuuuu) Fresh appraisal of the No change
project. For change of
vvvvv) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.
 RESCHEDULMENT GUIDELINES
Existing Policy
(I) LENDER will not normally allow
rescheduling of installment(s) of loan as
incorporated in the loan agreement.
However, in exceptional cases described
below, LENDER may consider revision of
original repayment schedule if such a
measure is desirable in the interest of the
project and recovery of LENDER loan
amount.
The reschedulment of installment of
Principal shall be permitted on case by case
basis. Funding interest should normally be
for a period upto two years however, the
same can be decided on case by case basis to
be co-terminus with the instalment of the
Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans
in the following circumstances :
442. When the borrower
demonstrates that its ability to
service the debt/s has been adversely
affected by an earthquake, war,
fire,flood or drought.
Revised Policy Remarks/Justification
(I) LENDER will not normally allow rescheduling No change.
of installment(s) of loan as incorporated in the
loan agreement. However, in exceptional
cases described below, LENDER may consider
revision of original repayment schedule if such
a measure is desirable in the interest of the
project and recovery of LENDER loan amount.
The reschedulment of installment of Principal For more clarity.
shall be permitted on case to case basis.
Funding interest should normally be for a
period upto two years however, the same can
be decided on case to case basis for longer
period/ to be co-terminus with the instalment
of the Principal depending upon the cash flow
projections submitted by the borrower.
LENDER may consider rescheduling of loans in
the following circumstances :
568. When the borrower demonstrates For more clarity.
that its ability to service the debt/s has
been adversely affected force majeure
conditions such as earthquake, war,
fire,flood or drought etc.
 -2-

443. In respect of co-financed 569. In respect of co-financed No change.

projects, if the other institutions have projects, if the other institutions have
agreed to reschedule the loan for the agreed to reschedule the loan for the
project. project.
444. If the borrower is not in a 570. If the borrower is not in a position No change.
position to service debt on account of to service debt on account of impact of
impact of government policies, effect government policies, effect of industrial
of industrial unrest i.e. strikes, unrest i.e. strikes, lockouts etc., even if
lockouts etc., even if the loan is not the loan is not co-financed but the
co-financed but the borrower is able borrower is able to satisfy LENDER in this
to satisfy LENDER in this regard. regard.
445. If the commissioning of the 571. If the commissioning of the No change.
project is delayed beyond the project is delayed beyond the
moratorium period originally given, moratorium period originally given, for
for valid reasons. valid reasons.
446. For projects which are of 572. For projects which are of No change.
pioneering effort, experimental, demo pioneering effort, experimental, demo
type, first of its kind, involving type, first of its kind, involving
developmental efforts, where developmental efforts, where
technology has not yet stabilized, grid technology has not yet stabilized, grid
stabilization yet to take place etc. stabilization yet to take place etc.
447. If the payments to the 573. If the payments to the borrowers No change.
borrowers are not made by State are not made by State Electricity Boards
Electricity Boards (SEBs) in respect of (SEBs) in respect of grid connected
grid connected projects. projects.

448. In case the borrower is able to
satisfy LENDER through documentary
evidence that they are not in a
position to service the debt(s) on
account of demands by the tax
authorities like Income Tax, Excise
Tax and Sales Tax which substantially
effects the cash flow position of the
borrower.
-3-
574. In case the borrower is able to No change.
satisfy LENDER through documentary
evidence that they are not in a position
to service the debt(s) on account of
demands by the tax authorities like
Income Tax, Excise Tax and Sales Tax
which substantially effects the cash flow
position of the borrower.
575. The project is shut down due to The change is proposed
break down of major equipments like due to the reasons that
boiler, turbine etc. which adversely many projects are
affect the capacity utilization for the suffering on account of
such break downs which
project.
affects the revenue
generation capacity for
a longer period.
The conditions for
576. Any other factor adversely reschedulment as
affecting the cash flow and debt indicated in para 1 to 8
service capacity of the borrower, to above have normally
the satisfaction of LENDER. been witnessed in the
past however, these can
not be the exhaustive
list and reschedulment
may be need for reasons
other than the above.
To speed-up such cases,
for sanction, this new
clause is proposed to be
added.
 -4-
Notes : Notes :

cxxvii. Cases which have been cxxvii. Cases which have been Change is proposed,
registered with BIFR will be considered registered with BIFR will be to avoid delay in
for reschedulment only after the order of considered for reschedulment which sanction of
the BIFR is passed. will be informed to the BIFR for reschedulment and
consideration and to be included in implementing the
DRS package. same for the purpose
of speedy recovery as
cxxviii. Borrowers who have filed waiting for approval
cases against LENDER will be eligible for of BIFR may take long
reschedulment, if they withdraw the time.
court cases and clear the overdues.
cxxviii. Borrowers who have filed cases
against LENDER will be eligible for No change.
reschedulment, if they withdraw the
court cases and clear the overdues.
(II) However, requests for reschedulement (II) However, requests for reschedulement may
may not be considered if the borrower(s) not be considered if the borrower(s)
cdxlii. faces resource crunch on account of ccclxxix. faces resource crunch on No change.
mismanagement or inefficiency of account of mismanagement or
the management, failure to control inefficiency of the management,
expenditure etc. ; failure to control expenditure etc. ;
cdxliii. makes payment to other ccclxxx. makes payment to other No change.
institution(s) but commits default in institution(s) but commits default in
payment of LENDER dues ; payment of LENDER dues ;
cdxliv. has not tendered request for ccclxxxi. has not tendered request for No change.
reschedulment to LENDER ; reschedulment to LENDER ;
 -5-
cdxlv. is profit making and dividend paying ccclxxxii. is profit making and dividend No change.
(unless the overdues relating to paying (unless the overdues relating
interest are cleared); to interest are cleared);
cdxlvi. Defaults and criminal action isccclxxxiii. Defaults and criminal action is No change
initiated under Negotiable initiated under Negotiable
Instruments Act for dishonour of Instruments Act for dishonour of
cheques unless the borrower remits cheques unless the borrower remits
the : the :

a) entire overdues of interest ; hhhhhhhh) entire overdues of The change of (a) and (b)
are proposed due to the
b) 50% of the Principal Loan amount interest ; Over due interest of fact that the
for such instalments. normally not less than 25% (*) reschedulment is normally
c) entire incidental charges iiiiiiii) 50% of the Principal Loan resorted to when the
including legal charges ; amount for such instalments. borrower demonstrates his
inability to service the
dues as per the original
schedule. Putting the
condition of payment of
instalments overdues/ 50%
principal literally makes it
difficult to honour the
same. In the interest of
faster recovery from those
defaulted account, the
deletion is proposed.
jjjjjjjj) entire incidental charges
including legal charges ;
 -6-
cdxlvii. defaults and cases filed ccclxxxiv. Defaults and cases filed in Debt No change
in Debt Recovery Tribunal unless the Recovery Tribunal unless the
borrower : borrower :

a) remits the entire dues of interest
; interest ; Over due interest of (a) is proposed due to the
b) remits the entire incidental and
legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
wwwww) remits the entire dues of The change of condition
normally not less than 25% (*) fact that the
reschedulment is normally
resorted to when the
borrower demonstrates his
inability to service the
dues as per the original
reschedulement. Putting
the condition of payment
of instalments overdues/
50% principal literally
makes it difficult to
honour the same. In the
interest of faster recovery
from those defaulted
account, the deletion is
proposed.
xxxxx) remits the entire incidental
and legal charges and agreement is
entered into for the balance
amount with the approval of the
Court.
 -7-

cdxlviii. have been issued Recall Notices lxx. Have been issued recall notices, This has been
unless all the overdues interest and unless the borrower remits Over due modified due to the
incidental expenses are cleared. interest of normally not less than 25% fact that the
(*) and entire LDs and incidental reschedulment is
charges on approval of the normally resorted to
reschedulment. when the borrower
demonstrates his
inability to service the
dues as per the
original
reschedulement.
Putting the condition
of payment of entire
over due interest
literally makes it
difficult to honour the
same. In the interest
of faster recovery
from those defaulted
account, the
modification is
proposed.

(III) Each reschedulment request shall be (III) Each reschedulment request shall be
subject to :
a) Fresh appraisal of the project.
b) Approval of the Managing
Director/Board as the case may be.
(IV) In case of rescheduling, LENDER shall :
 Extend the moratorium and overall
repayment period as per present
policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier,
if required on account of pari-passu
arrangements for security.
-8-
subject to :
wwwww) Fresh appraisal of the No change
project. For change of
xxxxx) Approval of the Chairman designation of MD to
& Managing Director/Board as the CMD
case may be.
(IV) In case of rescheduling, LENDER shall : No change.
 Extend the moratorium and overall
repayment period as per present policy.
 The extension of period beyond the
present policy may be considered on
case by case basis.
 In case of co-financing cases LENDER
may follow the terms of co-financier, if
required on account of pari-passu
arrangements for security.
 -9-

Notes : Notes : Moratorium is

(i) Power projects which could not be (i) Power projects which could not be considered based on
commissioned or stabilized after commissioned or stabilized after commissioning the commissioning as
commissioning within the moratorium period within the moratorium period may be per present
may be considered for a further moratorium considered for a further moratorium of one guidelines. Hence,
of one year or six months from the date of year or six months from the date of the note is no longer
commissioning subject to the overall commissioning subject to the overall required and proposed
repayment period remaining within the repayment period remaining within the existing to be deleted.
existing period. period.
(ii) In case the borrower, though in default, (ii) In case the borrower, though in default, No change.
does not require reschedulment but proposes does not require reschedulment but proposes
to clear the overdues in one instalment, to clear the overdues in one instalment,
LENDER may consider request for reduction LENDER may consider request for reduction of
of Liquidated Damages by 50% as One Time Liquidated Damages by 50% as One Time
measure. measure.
(iii) In the event of LENDER agreeing to the (iii) In the event of LENDER agreeing to the Conditions as per
request of the Borrower for reschedulment, request of the Borrower for reschedulment, prevailing guidelines
the borrower will be required to furnish Post the borrower will be required to furnish Post are to be applied.
Dated Cheques both for instalments of Dated Cheques both for instalments of
interest/open Trust and Retention Account interest/open Trust and Retention Account
(TRA)/ear-marking of Cash Credit Limits to (TRA) and other conditions as may be feasible
the extent of the instalments due/furnish in terms of the prevailing guidelines.
Bank Guarantee towards the dues for two
quarters.
 -10-

(iv) Board has empowered MD to approve (iv) Board has empowered The procedure is
reschedulment proposals, if the same were CMD to approve reschedulment proposals, if followed-up
in accordance with the approved policy of the same were in accordance with the consistently.
the Board. The proposals requiring approved Guidelines of the Board. The
deviations from approved policy of the Board
proposals requiring deviations from approved
will,however, be put-up to the Board for Guidelines of the Board will,however, be put-
consideration (Circular NO. Sectt.DOP/87- up to the Board for consideration and approval.
MS/LENDER dated 04th October,2001). (Circular NO. Sectt.DOP/87-MS/LENDER dated
04th October,2001).
(v) The approvals accorded by the Managing (v) The approvals accorded by the CMD No change.
Director will be put upto the Board for Director will be put upto the Board for
information. information.

(*) The condition can be considered for relaxation for borrowers having no other revenue stream except the project
revenue.